Dollar hits six-month high against rupee

Karachi- The US dollar rose 63 paisas in the inter-bank market on Monday after which it touched the Rs103.30 mark. Experts have blamed the current political situation for what they call the rupee's instability and feared that it may further devalue if the situation does not normalize soon. Before Monday, the rupee stood at 102 to a dollar, but rose soon after trading began. Up until two months ago, the rupee had appreciated considerably, and was stable at 98.1/98.3 against the dollar, buoyed by remittances and $1.5 billion ‘gift’ from Saudi Arabia in the form of foreign exchange. But heavy debt repayments to the International Monetary Fund (IMF) had dented the central bank’s foreign currency reserves, which declined significantly, putting pressure on the rupee. The market has also taken a hit because of the current political turmoil. The benchmark Karachi Stock Exchange also saw a drop of over 200 points and has shown volatile behavior. Earlier, currency experts had predicted that the dollar's high tide would fall and the rupee would strengthen its position.